HomeMy WebLinkAbout1709 WarfieldSTATE ETHICS COMMISSION
309 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Re: Karen L. Warfield, Fife Docket:
Respondent : X -ref:
Date Decided
Date Mailed:
16 -006
Order No. 1709
1124117
1/31/17
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the
commencement of its investigation, the investigative Division served upon Respondent
written notice of the specific allegations. Upon completion of its Investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an "Investigative Complaint." An Answer was filed. A Stipulation of Findings and a
Consent Agreement were subsequently submitted by the parties to the Commission for
consideration. The Stipulated Findings are set forth as the Findings in this Order. The
Consent Agreement has been approved.
I. ALLEGATIONS:
That Karen Warfield, a public official /public employee in her capacity as a Member
of the Irvona Municipal Authority, Clearfield County, violated [Sections 1103(a), 1105(b)(2),
and 1105(b)(5)] of the State Ethics Act (Act 93 of 1998) when she utilized the authority of
her publicposittion for the private pecuniary benefit of Donald Morrison, her brother and
member of her immediate family, when she participated in discussions and actions of the
Municipal Authority Board of Directors, including but not limited to, motioning and voting for
an increase in compensationlwage for her brother, who was an employee of the Authority;
when she failed to )Dist an occupation or profession on [a] Statement of Financial Interests
filed for the 2014 calendar year; and [when she failed to list] the name and address of any
direct or indirect source of income totaling in the aggregate 1,300 or more on Statements
of Financial Interests filed for the 2011, 2013, and 2014 calendar years.
II. FINDINGS:
1. Karen Warfield ( "Warfield ") has served as a Member of the Irvona Municipal
Authority (hereafter "IMA ") Board since approximately October 15, 2012.
a. The IMA Board is comprised of five (5) Members appointed by Irvona
Borough Council.
b. The IMA provides municipal water service for residents of Irvona Borough
and portions of Beccaria Township.
P.O. BOX 11470, HARRISBURG, PA 17108 -1470 • 717 - 783 -1610 • 1 -800- 932 -0936 • www.ethics.state.pa.us
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C. Public sewer service is provided by BCI municipal authority, a separate
operating authority with no affiliation with the IMA.
d. IMA Board Members serve without compensation.
2. During 2014, the IMA Board consisted of Warfield, Terry Whetstone, Tom Adam,
Richard Holes, and Donald Morrison.
a. Donald Morrison ( "Morrison ") is Warfield's brother, and a member of her
immediate family as defined by 65 Pa.C.S. § 1102.
3. Morrison served as a Member of the IMA Board for approximately twenty (20) years,
terminating his service at the end of calendar year 2015.
a. Morrison also has been employed by the IMA on a part-time and/or casual
basis since approximately November 3, 2003.
b. The distinction between part -time laborers and casual employees, as defined
by the IMA, is that part -time laborers typically receive some scheduled work
hours each week, whereas casual employees are utilized on an as- needed
basis.
4. The day -to -day operations of the IMA are managed byy both full and part-time
compensated employees, including an office manager, office assistant, water plant
operator, assistant water plant operator, and various water plant laborers.
a. Billing, customer service, and other administrative functions are the
responsibility of the Office Manager, Vickie Johnston, and/or her part -time
assistant, Nila Henry.
b. Plant operation functions are supervised by, and the responsibility of, the
designated water plant operator and include water treatment, meter
readings, repairs, service activations, service shut offs, and completion of all
required Pennsylvania Department of Environmental Protection (hereafter
°DEP ") reports.
G. The designated water lant operator has the additional responsibility of
scheduling work hours for the part-time and casual employees.
5. Since 2012, Jeff Parks ( "Parks ") and Morrison each have served as the designated
water plant operator.
a. Morrison replaced Parks as the IMA's designated water plant operator on
October 20, 2014.
b. In addition to Parks /Morrison, Ken Caldwell was hired by the IMA as the
assistant plant operator on December 15, 2014.
Caldwell was the designated assistant plant operator under the
supervision of Morrison.
6. Between October 15, 2012, and September 2014, the IMA Board did not take any
official action to approve an hourly pay rate or to set the number of hours to be
worked by Morrison as a full -time, part-time, or casual employee.
a. During this timeframe, Parks was the IMA's designated full -time water plant
operator.
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b. Parks also was the designated licensed plant operator for the IMA as
required by ❑EP.
C. Between October 15, 2012, and September 2014, Parks was compensated
by the IMA at an hourly rate of $16.25.
7. During the same time period (October 15, 2012-September 2014), Morrison was
considered a casual employee and compensated at the pay rate of $11.50 per hour.
a. Morrison worked and/or was compensated for a total of approximately 15.5
hours for the IMA between October 15, 2012, and September 2014, as
follows:
December 8, 2012: 9 hours at $11.50 per hour, $103.50 gross.
2. 2013: 6.5 hours at $11.50 per hour, $74.75 gross.
3. January- September 2014: no hours worked.
b. Between 2012 and 2014, in addition to being a casual IMA employee,
Morrison was a full -time employee of the Pennsylvania State University.
8. On or about October 2, 2014, IMA treatment plant employee Parks sustained a
work - related injury.
a. Parks was the IMA's full -time licensed plant operator at the time.
b. At the time of Parks' injury, the IMA had two (2) to three (3) part-time /casual
laborers, including Morrison.
C. Parks remained on Workers' Compensation until at least .January 7, 2015,
and eventually separated from service on April 8, 2015.
9. Pursuant to DEP regulations, the IMA was required to have at least one licensed
plant operator at all times.
a. The IMA did not have any established policy as to the number of licensed
plant operators it was to employ at any given time.
b. The IMA employed at least one (1) licensed plant operator at all times in
order to comply with DEP requirements.
10. As a result of Parks' separation from employment, the IMA was in need of a
licensed plant operator to oversee plant operations in order to be compliant with
DEP regulations.
a. Morrison was the only individual affiliated with the IMA at that time (other
than Parks) who held a valid plant operator certification from DEP.
11. During the IMA Board's October 20, 2014, meeting, Warfield participated in a Board
discussion concerning Parks' injury and the acceptance of an offer made by her
brother, Donald Morrison, to serve as the licensed plant operator in Parks' absence.
a. Morrison was a Member of the IMA Board at the time and a casual employee
but had worked no hours since 2013.
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b. Present at the IMA Board's October 20, 2014, meeting were IMA Board
Members Warfield, Morrison, Tom Adam, and Terry Whetstone, and Office
Manager Vickie Johnston.
IMA Board Member Rick Holes was absent from this meeting.
12. Minutes from the IMA Board's October 20, 2014, meeting included the following
information concerning Parks' injury and Morrison being appointed /designated as
plant operator:
a. "Jeff Parks is off on comp. as of October 2, 2014. He had knee surgery on
Thursday October 9, 2014 and has a Dr. appointment this week and will let
us know about therapy and how long he will be off. Donald Morrison is
hanging his license for $300.00 a month. He also has keys and pager.
Walter Fontanella is working 3 days a week."
The term "hanging his license" was defined as the placement of a
plant operator's license on file as the recognized licensed operator,
responsible for supervising and/or operating the facility.
13. There was no vote recorded by the IMA Board as to the change in licensed operator
from Parks to Morrison, any change in Morrison's salary, or any alteration as to the
number of hours Morrison was permitted or expected to work each week.
a. Morrison was the only person affiliated with the IMA at the time of Parks'
injury who held a valid plant operator's license, other than Parks.
14. Historically, the IMA has provided the licensed plant operator with additional
compensation of $300.00 per month.
a. Since 2012, no official IMA Board action was taken concerning the $300.00
per month additional licensed plant operator's compensation, or any
designation as to the number of licensed plant operators the IMA would
simuitaneously record.
b. The $300.00 per month licensed operator fee was an IMA benefit, not a DEP
requirement.
C, The practice of providing the additional $300.00 monthly payment to the
licensed plant operator predated Warfield's service as an IMA Board
Member.
15. IMA Board Members Warfield, Tom Adam, and Terry Whetstone were in favor of
utilizing Morrison as the licensed plant operator primarily due to his familiarity with
the system, his possession of a valid plant operator's license, and [the fact] that he
was a longtime part -time /casual employee.
a. These IMA Board Members, and Office Manager Vickie Johnston, all
believed that had they not utilized Morrison, the IMA's only other options
would have been to hire an engineering firm or some other licensed plant
operator to oversee plant operations.
1. Both of these options were viewed by the IMA Board and the Office
Manager as more costly than hiring Morrison.
16. At the time of his injury, Parks was earning $16.25 per hour in addition to the
$300.00 monthly stipend as the IMA's licensed plant operator.
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a. Morrison was earning $11.50 per hour on an "as- needed" basis.
b. Morrison was not the plant operator of record for the IMA prior to October
2014.
C. Morrison was certified as a licensed plant operator by DEP throughout
Warfield's tenure on the IMA Board.
17. During the IMA Board's November 17, 2014, meeting, Board Member Rick Holes
thanked Morrison for offering the use of Morrison's plant operator's license while
Parks was absent due to Workers' Compensation leave.
a. Holes was absent from the IMA Board's October 20, 2014, meeting when
Morrison offered the use of his operator's license.
b. There were no recorded discussions or any further actions taken concerning
Morrison's compensation at the November 17, 2014, meeting.
C. At the November 2014 meetin , employee Walter Fontanella was
additionally authorized to work two 12) to three (3) days per week until Parks'
anticipated return.
18. From October 20, 2014, through December 21, 2014, Morrison worked a total of
22.0 hours overseeing IMA plant operations.
a. During this time, Morrison received both wages as a laborer and three (3)
monthly licensed operator's stipends totaling $1,153.00, as follows:
1. 22.0 hours at $11.50 per hour for a total of $253.00.
2. Three (3) monthly licensed operator's stipends at $300.00 per month
for a total of $900.00.
b. Morrison supervised the work of Walter Fontanella and completed all
required DEP reports during this time frame, duties that were previously
performed by Parks.
19. Concerns arose among IMA Board Members that Parks would not return to work,
and as such the IMA interviewed applicants for the full -time position of assistant
plant operator from around late November through early December of 2014.
a. The IMA Board interviewed approximately three (3) applicants, including Ken
Caldwell ( "Caldwell ").
b. IMA Board Members Warfield and Morrison both participated in the interview
process.
C. Morrison was employed full -time by the Pennsylvania State University at the
time and was not considered for the position.
20. Warfield participated in discussions and official actions taken by the IMA Board
during the December 15, 2014, meeting concerning the hiring of Caldwell, and she
took official action to approve the compensation for IMA employees, including
Caldwell and Morrison, effective January 1, 2015.
a. Minutes reflect that Warfield made the motion and voted to approve
emlo ee raises, which included Morrison's hourly rate being increased from
$1 T50 to $16.00 per hour.
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b. This same motion set Caldwell's hourly rate at $15.50 during his 90 -day
probationary period, and maintained Parks' compensation at $16.25 per
hour.
1. Caldwell's hourly pay was increased to $16.00 per hour on April 20,
2015, upon completing his probationary period and successfully
passing his plant operator's licensing exam.
C. The IMA does not have a uniform pay scale for any of its employment
positions.
21. Minutes from the IMA Board's December 15, 2014, meeting detail the following
official action taken by Warfield approving employee raises for 2015:
a. "Karen motions to give Vickie Johnston, Nila Henry both a 3% raise, Donald
Morrison] from $11.50- $16.00, Jeff Hewitt stays at $12.31 casual, Walter
ontanella from $8.74 - $10.00, Jeff Parks remains at $16.25 Vday on
compensation as of October 2014). Ken Caldwell -full -time on
probation as of December 29, 2014 will get $15.50 per hour. Terry
Whetstone seconds, all in favor. Donald [Morrison] abstains."
b. Warfield voted on a related motion to hire Caldwell to fill the full -time position
of assistant plant operator.
22. Warfield both made the motion and voted to approve the salary increase for her
brother, Donald Morrison, which increased his wage earnings from $11.50 to $16.00
per hour, effective January 1, 2015.
a. The IMA Board did not set or establish a minimum or maximum number of
hours that Morrison could work during 2015.
b. The vote of the IMA Board did not change or affect the $300.00 monthly
licensed operator stipend Morrison had been receiving since October 2014.
C. The IMA Board determined that Morrison would train Caldwell and serve as
the licensed plant operator until such time as Caldwell successfully
completed his plant operator's test.
d. The hours Morrison worked were determined by Morrison and were
discussed between him and Caldwell, based on Caldwell's training needs.
Morrison's and Caldwell's work schedules were determined without
IMA Board review or approval.
23. During 2015, Morrison set his own work hours, including hours spent in training and
assisting Caldwell.
a. Morrison's work hours were recorded through timecards.
b. Morrison's timecards were compiled by Office Manager Vickie Johnston.
1. Johnston would prepare payroll checks based on employee
timecards.
2. Issuance of payroll did not require pre - approval by the IMA Board.
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3. Timecards are available for review by the IMA Board to verify
issuance of the payroll checks prepared by Johnston.
4. Payroll checks are generally signed by Johnston and one (1) IMA
Board Member.
5. In Johnston's absence, two (2) IMA Board Members may sign.
C. Warfield did not execute any payroll checks issued to Morrison.
d. Warfield did review timecards for all IMA employees, including Morrison.
24. Payroll records for Morrison reflect that he worked between 4.5 and 47.25 hours per
pay period between January 3, 2015, and August 15, 2015.
a. No IMA Board action was taken to designate the number of hours Morrison
was to work.
b. A de facto payroll approval occurred by the IMA Board's review of timecards
and issuance of payroll checks.
C. Once Caldwell received his plant operator license on approximately August
15, 2015, Morrison ceased workin part-time hours and reverted to casual
employee status (as- needed basis.
d. Morrison also ceased receiving the $300.00 monthly operator fee stipend as
of August 15, 2015.
e. The licensed operator stipend was paid to both Morrison and Caldwell during
July and August 2015.
25. Warfield's use of her public office on December 15, 2014, by voting to increase
employee wages for 2015, resulted in her brother receiving an increase of $4.50 per
each regular hour and $6.75 per each overtime hour for which he claimed and
received compensation.
26. Warfield's actions resulted in a financial gain to Morrison totaling at least $1,823.68
as a result of the salary increase.
a. The financial gain [consists of increased pay totaling $1,688.68 for regular
hours claimed plus increased pay totaling $135.00 for overtime hours
claimed].
b. The financial gain is calculated [based upon the difference between the pay
rate of $16.00 per regular hourl$24.00 per overtime hour that Morrison
received following Warfield's official action and the pay rate of $11.50 per
regular hour /$17.25 per overtime hour that Morrison received prior to
Warfield's official action].
27. Payroll records for 2015 do not detail a $109.90 payment made to Morrison on or
about January 24, 2015, which was determined by Office Manager Vickie Johnston
to be "on call hours" worked by Morrison.
a. The remaining payments made to Morrison are detailed in the chart below,
and evidence the difference between [the compensation that Morrison
received based upon his 2015 pay rate and the compensation that he would
have received based upon his 2014 pay rate].
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Pay
Period
Ending
Total Hours Claimed 2015
2015 Calendar Wage /Overtime
Compensation Rate
2014 Calendar Wage /Overtime
Compensation Rate
Regular Hours
vertime
Hours
egular Wage
$16.00/hr.
Overtim e
$24.001hr.
Reu ar Wage
?11.50/hr.
Overtime
$17.251hr.
01/03/15 1
15.00
0.00
$240.00
$0.00
$172.50
$0.00
01/17/15
31.50
0.00
$504.00
$0.00
$362.25
$0.00
01131/15
28.25
0.00
$452.00
$0.00
$324.87
$0.00
02/14/15
29.75
0.00
$476.00
$0.00
$342.12
$0.00
02/25/15
22.75
0.00
$364.00
$0.00
$261.62
$0.00
03/14/15
18.75
0.00
$300.00
$0.00
$215.62
$0.00
03/29/15
47.25
0.00
$756.00
$0.00
$543.37
$0.00
04/10/15
43.50
0.00
$696.00
$0.00
$500.25
$0.00
04/25/15
16.50
0.00
$264.00
$0.00
$189.75
$0.00
05/09/15
20.25
0.00
$324.00
$0.00
$232.87
$0.00
05/23/15
17.75
0.00
$284.00
$0.00
$204.12
$0.00
06/06/15
22.50
6.00
$360.00
$144.00
$258.75
$103.50
06/20/15
2.25
4.00
$36.00
$96.00
$25.87
$69,00
07/04/15
23.25
4.00
$372.00
$96.00
$267.37
$69.00
07/18/15
17.75
2.00
$284.00
$48.00
$204.12
$34.50
08/01/15
15.75
2.00
$252.00
$48.00
$181.12
$34.50
08/15/15
2.50
2.00
$40.00
$48.00
$28.75
$34.50
375.25
20.00
$6,004.00
$480.00
$4,315.32
$345.00
28. IMA financial records reflect that Morrison received gross wages of approximately
$6,004.00 as compensation for 375.25 regular hours of work at $16.00 per hour and
$480.00 for 20 hours of overtime pay at a rate of $24.00 per hour during 2015.
a. Prior to Warfield's use of office to increase her brother's (Morrison's)
compensation, Morrison would have been paid $4,315.32 for regular hours of
work and $345.00 in overtime pay during 2015.
b. The difference between Morrison's pre -2015 wage and post -2015 wage
reveals that a private pecuniary gain of $1,823.68 was received as a result of
Warfield's official action(s).
C. The payments detailed above do not include the $300.00 per month licensed
operator stipend Morrison was receiving during 2015.
29. The IMA was annually required to report its designated licensed operator(s) to DEP.
a. Around June or July of each year, DEP forwards to each municipal authority,
including the IMA, a Public Water System Available Operator Report for the
year.
b. In the case of the IMA, the form is sent to and completed by Office Manager
Vickie Johnston.
C. The form requests the names of the available operators along with their
certificate numbers and class /subclass licenses.
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30. Since July 22, 2014, Vickie Johnston has completed and signed each annual
available operator report submitted by the IMA to DEP.
a. Johnston signed and dated reports for 2014 on July 22, 2014; 2015 on June
15, 2015; and 2016 on August 15, 2016, respectively.
b. Johnston utilized the IMA's email address of irvonawater(a-)-yahoo.com and
office phone number of 814672 -3959 as the point of contact on these tilings.
C. Parks was listed as the only licensed operator on the 2014 report.
d. Parks is listed as being removed effective May 15, 2015, and Morrison
added effective January 3, 2015, on the 2015 report.
31. Changes to the licensed plant operators on file with DEP can be made throughout
the year by using an online submission form.
a. The online submissions are forwarded electronically to the attention of Ian
Scott Sykes, DEP Water Program Specialist, Bureau of Safe Drinking Water,
Rachel Carson State Office Building, 400 Market Street, Harrisburg, PA
17101.
b. One of Sykes' primaryaob duties with DEP is to manage the database which
contains operator certification program information.
Sykes is responsible for processing change of available operator
requests submitted online to DEP.
32. On July 22, 2015, Vickie Johnston submitted a Change of Available Operator
Notification to DEP adding Caldwell to the available operator list for the IMA.
a. Johnston utilized the online filing process detailed in the previous findings to
add Caldwell.
b. No change was made to the status of Morrison.
1. Morrison was not removed from DEP records as an available operator
for the IMA.
C. Johnston again utilized the IMA phone number and email address as the
point of contact for this change.
d. No IMA Board action was taken directing that Caldwell be added as an
available operator.
The IMA Board was aware that Caldwell passed his licensed operator
exams with DEP based on information Johnston provided the IMA
Board during its April 20, 2015, meeting.
33. From July 22, 2015, until May 15, 2016, Morrison and Caldwell were both
designated as available plant operators for the IMA with DEP.
34. On May 12, 2016, Warfield sent an email from her personal email account of [email
address redacted] to Nicholas Barndt ( "Barndt "), Sanitarian assigned to DEP's North
Central Regional Office (email (email address redacted]), requesting the internet link
to DEP's online change of available operator form.
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a. Warfield identified herself in the email as a "Member of the Board of
Directors" for the IMA.
b. Warfield requested Barndt to provide her with a link to the online change of
operator form, and provided him (Barndt) with her personal email address as
the only point of contact.
C. Warfield did not provide Barndt with any contact information for the IMA,
specifically, its phone number or email address.
d. In Warfield's email to Barndt, she wrote "Nick I (wouldWemailis[email
ppreciate you
sending me the link to the online change of operator form.
address redacted]."
e. Warfield did not include any information justifying the reason for her request
for the link to DEP's change of operator form.
Warfield made this request in her official capacity as a Member of the IMA
Board.
35. On May 15, 2016, Warfield used a personal email and phone contact information to
submit an online Change of Available Operator Notification to DEP using the
internet link she obtained from Barndt.
a. War-field's May 15, 2016, online submission to DEP removed Caldwell as the
licensed operator on file with DEP and replaced him with her brother, and
member of her immediate family, Donald Morrison.
b. There was no prior IMA Board authorization for Warfield to take such
actions.
C. There were no prior submissions by anyone on behalf of the IMA to DEP
requesting the removal of Morrison from DEP files as a licensed plant
operator for the IMA.
d. Warfield concealed her actions of contacting DEP to reinstate her brother by
using a private email address and phone contact.
1. Warfield never informed the IMA Board or Office Manager Vickie
Johnston of her attempts to remove Caldwell in order to reinstate her
brother.
2. Johnston was the point of contact and signed all other DEP annual
operator and /or change of available operator forms submitted to DEP
since at least 2014.
3. Warfield had Morrison obtain the needed facility information and
operator numbers from IMA files to make the change without
Johnston's knowledge.
e. Warfield was unaware that her brother was still listed as a licensed plant
operator for the IMA with DEP at the time she initiated this change.
36. This Change of Available Operator form was submitted by Warfield to DEP on
Sunday, May 15, 2016, at 4:08 p.m.
a. Warfield is identified as the contact person with a phone number of
[telephone number redacted] and a contact email address of (email address
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redacted].
b. The contact phone number of [telephone number redacted] is a personal cell
phone number for Warfield.
G. The contact email address of [email address redacted] is a personal email
account for Warfield.
d. No IMA contact information was included on this submission.
37. Warfield initiated the change to add Morrison based on her belief that her brother
was no longer listed with DEP as a licensed plant operator for the IMA and therefore
unable to resume collecting a $300.00 operator fee.
a. Warfield's use of her public position when contacting DEP to list her brother
as a licensed operator [was intended to enable] Morrison to receive the
$300.00 per month licensed operator fee paid by the IMA.
b. Caldwell was the only IMA employee receiving a $300.00 monthly operator
payment.
1. Morrison ceased receiving the monthly $300.00 license stipend in
August of 2015 when Caldwell obtained an operator's license.
38. During the IMA Board's May 19, 2016, meeting, and following her actions with DEP,
Warfield participated in a discussion and official action [that sought] to appoint her
brother as the water operator in charge and to terminate the employment of
Caldwell, which [would have] resulted in Morrison receiving the $300.00 per month
licensed operator fee.
a. This meeting occurred four (4) days after Warfield had submitted a Change
of Available Operator Notification to DEP.
b. Minutes from this meeting confirm that an executive session was held for
"employee matters" (unspecified).
The executive session enabled Warfield to solicit the IMA Board to
appoint/authorize her brother as the water operator in charge, and
terminate the employment of Caldwell.
C. Present for the meeting were IMA Board Members Warfield, Terry
Whetstone ( "Whetstone "), and Tom Adam ( "Adam ").
1. Newly appointed IMA Board Member Dan Smith ( "Smith ") was not in
attendance.
2. The IMA Board was comprised of only four (4) Members at the time.
aa. Any IMA Board action required at least three (3) votes for
approval.
39. Upon completion of the executive session, Warfield made a motion to appoint
Morrison as the water operator in charge.
a. Whetstone seconded the motion.
b. Adam opposed Warfield's motion.
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C. Warfield followed her initial motion with a second motion to accept Caldwell's
verbal resignation tendered in November 2015, to which Whetstone also
seconded and Adam opposed.
1. Caldwell's alleged resignation occurred approximately seven (7)
months prior to Warfield's motion.
d. Neither of Warfield's motions was approved due to a lack of three (3) votes
to approve any motion.
40. The two motions made by Warfield would have enabled her brother to be
designated the plant operator in charge and to once again receive the $300.00 per
month licensed operator fee paid by the IMA.
41. Immediately after the motions were made during the May 19, 2016, meeting,
Caldwell confronted Warfield during the meeting regarding the legality of her
participating in IMA Board actions relating to the employment status of Warfield's
brother, and accused her of participating in an illegal vote.
a. As a result of Caldwell's accusation of an illegal vote, Whetstone then made
the motion "to hire Donald Morrison as acting water operator and hang his
license immediately, Tom Adam opposes."
b. Warfield did not participate in Whetstone's motion which failed for a lack of a
second.
42. In an effort to obtain a quorum to facilitate a vote on her motions, Warfield directed
Office Manager Johnston to contact recently appointed IMA Board Member Smith to
request him to report and participate in the meeting to vote on appointing Morrison
as plant operator.
a. Upon arriving at the meeting, Smith was apprised of the matter by the IMA
Board and Caldwell.
b. Upon hearing from both the other IMA Board Members and Caldwell, Smith
declined to vote on the issue.
C. As a result of Smith's refusal to vote, minutes reflect that the "motion is not
carried and tabled pending a full quorum. Ken Caldwell is water license on
record."
d. As of the IMA Board meeting of May 2016, the IMA Board consisted of four
(4) Members: Warfield, Adam, Whetstone, and Smith.
43. There was no IMA Board meeting held in June 2016, due to a lack of a quorum.
a. The lack of a quorum was caused by the resignation of Whetstone.
b. Jeffrey Gallaher ( "Gallaher ") was appointed to the IMA Board effective July
18, 2016, bringing the number of IMA Board Members again to four (4):
Warfield, Adam, Smith, and Gallaher.
44. Minutes from the meeting of the IMA Board on July 18, 2016, confirm that Warfield
participated in discussions related to the employment status of her brother.
a. Warfield asserted that Morrison has always been the operator in charge, and
that he (Morrison) never removed his license from the IMA.
Warfield, 16 -006
a�3
b. She staffed that Caldwell was hired as an assistant water operator.
C. Caldwell commented that when he was hired, he was informed he would be
the water operator and be compensated the $300.00 per month once he
received his license.
d. There was further discussion regarding Warfield's actions initiating a change
of operator form with DEP in May of 2016 to appoint her brother as the
licensed operator.
45. Caldwell continues to work for the IMA and continues to receive the $300.00 per
month licensed operator fee.
a. Morrison has not resumed receiving the fee as of the date of [the Consent
Agreement — December 2, 2016].
46. As a Member of the IMA Board, Warfield utilized the authority of her public office to
have discussions with and influence the Members of the IMA Board, culminating
with the IMA Board undertaking official action byway of Warfield's motion and vote
to authorize and initiate a $4.50 per hour pay increase for Donald Morrison, her
brother and a member of her immediate family, resulting in a private pecuniary
benefit to Morrison of no less than $1,823.68.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT WARFIELD
FAILED TO LIST AN OCCUPATION OR PROFESSION ON A STATEMENT OF
FINANCIAL INTERESTS FILED FOR THE 2014 CALENDAR YEAR AND THAT
SHE FAILED TO LIST THE NAME AND ADDRESS OF ANY DIRECT OR
INDIRECT SOURCE OF INCOME TOTALING IN THE AGGREGATE $1,300.00 OR
MORE ON STATEMENTS OF FINANCIAL INTERESTS FILED FOR THE 2011,
2013, AND 2014 CALENDAR YEARS.
47. Warfield, as a Member of the IMA Board, is annually required to file a Statement of
Financial Interests ( "SFI ") form by May 15f reporting information for the prior
calendar year.
48. The IMA is annually .provided with blank SFI forms by the State Ethics Commission
to be completed by its public officials and public employees.
a. Each January, Office Manager Vickie Johnston distributes blank SFI forms to
IMA officials and employees for completion.
b. Johnston maintains completed SFI forms with other IMA records.
49. Warfield was annually provided with a blank SFI form by Johnston to complete.
a. Blank SFI forms include an instruction page detailing information required to
be reported on the form.
b. Blank SFI forms also include the toll and toll free telephone numbers for the
State Ethics Commission, in an effort to address any reporting questions a
public official /public employee may have regarding the completion of the
form.
50. SFI forms on file with the IMA include the following filings for Warfield:
a. Calendar Year: 2015
Dated: 04/18/16 on form SECA REV. 01116
Position: Secretary/Treasurer, Irvona Municipal Authority
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Occupation: RN, Member of Authority
Creditors: None
Direct/Indirect Income: Penn Highlands Clearfield
Office, Directorship or Employment in any Business: Penn Highlands
Clearfield, employee
All other financial interests: None.
b. Calendar Year: 2014
Dated: 01/19/15 on form SEC -1 Rev. 01115
Position: Secretary/Treasurer
Occupation or Profession: No response
Creditors: None
Direct/Indirect Source of Income: No response
All other financial interests: None.
C. Calendar Year: 2013
Dated: 01/20/14 on form SEC-1 Rev. 01/14
Position: Assistant Secretary
Occupation or Profession: No response
Creditors: None
Direct/Indirect Source of Income: None
All other financial interests: None.
d. Calendar Year: 2012
Dated: 01/21/13 on form SEC -1 Rev. 01113
Position: Secretary/Treasurer
Creditors: None
Direct/Indirect Source of Income: Clearfield Hospital
Office, Directorship or Employment in any Business: Clearfield Hospital,
Home Care Director
All other financial Interests: None.
e. Calendar Year: 2011
Dated: 10/15/12 on form SEC -1 Rev. 01108
Position: Member
All other financial interests: None.
51. Warfield failed to report the Clearfield Hospital as a direct or indirect source of
income in excess of $1,300.00 on SFI forms filed for the 2011, 2013, and 2014
calendar years.
a. Warfield received income [in excess of $1,300.00 from the Clearfield
Hospital in 2011, 2013, and 2014 as reported on IRS W -2 Wage and Tax
Statements].
52. Warfield failed to provide a response as to her occupation as a nurse in Box # 6,
Occupation or Profession on SFI forms filed by her for the 2013 and 2014 calendar
years.
53. Donald Morrison, [Warfield`s brother and a member of her immediate family],
realized a private pecuniary gain of no less than $1,823.68 as a result of Warfield's
official use of office by motioning and voting to increase his hourly compensation as
an IMA employee from $11.50 to $16.00 per hour effective January 1, 2015.
54. Warfield utilized the authority of her public position as a Member of the IMA Board
to affect the compensated employment status of her brother, Donald Morrison, by
executing the following acts:
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a. Participating in IMA Board discussions relating to Morrison's employment
status on October 20, 2014, May 19, 2016, and July 18, 2016.
b. Motioning and voting to increase Morrison's hourly rate of pay from $11.50 to
$16.00 per hour effective January 1, 2015.
C. Submitting a Change of Available Operator Notification to DEP on May 15,
2016, removing Caldwell as the licensed plant operator and replacing him
(Caldwell) with Morrison, knowing that the IMA provides additional
compensation of $300.00 per month for its recognized licensed plant
operator.
[55.] Warfield further failed to accurately complete SFI forms for the 2011, 2013, and
2014 calendar years.
III. DISCUSSION;
As a Member of the Board of the Irvona Municipal Authority ( "IMA "), Clearfield
County, Pennsylvania, since approximately October 15, 2012, Respondent Karen L.
Warfield, also referred to hereinafter as 'Respondent," "Respondent Warfield," and
"Warfield," has been a public official subject to the provisions of the Public Official and
Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et sey.
The allegations are that Warfield violated Sections 1103(a), 1105(b)(2), and
1105(b)(5) of the Ethics Act: (1) when she utilized the authority of her public position for the
private pecuniary benefit of Donald Morrison, her brother and member of her immediate
family, when she participated in discussions and actions of the IMA Board, including but
not limited to motioning and voting for an increase in compensation /wage for her brother,
who was an employee of the IMA; (2) when she failed to list an occupation or profession on
a Statement of Financial Interests filed for the 2014 calendar year; and (3) when she failed
to list the name and address of any direct or indirect source of income totaling in the
aggregate $1,300 or more on Statements of Financial Interests filed for the 201 "f, 2013,
and 2014 calendar years.
Per the Consent Agreement of the parties, the Investigative Division has exercised
its prosecutorial discretion to nol pros the allegations under Section 1105(b) of the Ethics
Act. Based upon the no] pros, we need not address the Section 1105(b) allegations no
longer before us.
Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a) Conflict of interest. —No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
Warfield, 16 -006
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pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a member
of his immediate family or a business with which he or a
member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official /public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
The IMA provides municipal water service for residents of Irvona Borough and
portiportions of Beccana Township. The IMA Board is comprised of five Members appointed by
ons Borough Council. Warfield has served as a Member of the IMA Board since
approximately October 15, 2012. Warfield's brother, Donald Morrison ( "Morrison "), served
as a Member of the IMA Board for approximately twenty years, with such service
terminating at the end of 2015. Morrison has been employed by the IMA on a part -time or
casual basis since approximately November 3, 2003.
The day -to -day operations of the IMA are managed by full and part -time employees,
including a designated water plant operator ( "the Water Plant Operator "). The Water Plant
Operator is responsible for and supervises plant operation functions, including water
treatment, meter readings, repairs, service activations, service shut offs, and the
completion of all required Pennsylvania Department of Environmental Protection ( "DEP ")
reports. The Water Plant Operator is also responsible for scheduling work hours for the
part --time and casual employees.
Pursuant to DEP regulations, the IMA was required to have at least one licensed
plant operator ( "Licensed Operator ") at all times. The IMA did not have any established
policy as to the number of Licensed Operators it was to employ at any given time. The IMA
employed at least one Licensed Operator at all times in order to comply with DEP
requirements.
Historically, the IMA provided the Licensed Operator in charge of the facility with
additional compensation in the nature of a stipend of $300.00 per month, hereinafter
referred to as the "Licensed Operator Stipend.' The Licensed Operator Stipend was an
IMA benefit, not a DEP requirement. The p ractice of providing the Licensed Operator
Stipend predated Warfield's service as an IMA Board Member. Since 2012, no official IMA
Board action had been taken with regard to the Licensed Operator Stipend.
From at least October 15, 2012, Jeff Parks ( "Parks ") was the full -time Water Plant
Operator. Parks, who held a valid plant operator's license from DEP, was also the IMA's
Licensed Operator pursuant to DEP requirements. Parks was paid $16.25 per hour by the
IMA, and he also received the Licensed Operator Stipend.
From October 15, 2012, through September 2014, Morrison was considered a
casual employee of the IMA. The IMA utilizes casual employees on an as- needed basis.
Warfield, 16 -006
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The IMA Board did not take any official action to approve an hourly pay rate for Morrison or
to set the number of hours to be worked by Morrison. The IMA compensated Morrison at
the pay rate of $11.50 per hour for a total of approximately 15.5 hours worked as a casual
employee in December 2012 and 2013. Morrison did not work any hours as a casual
employee from January 2014 through September 2014. In addition to being a casual
employee of the IMA, Morrison was a full -time employee of the Pennsylvania State
University.
On or about October 2, 2014, Parks sustained a work - related injury that caused him
to be off work. As a result of Parks being off work, the IMA needed a Licensed Operator to
over plant operations in order to be compliant with DEP regulations. Other than Parks,
Morrison was the only individual affiliated with the IMA at that time who held a valid plant
operator's license from DEP.
The IMA Board held a meeting on October 20, 2014, at which IMA Board Members
Warfield, Morrison, Terry Whetstone "Whetstone "), and Tom Adam ( "Adam "), as well as
IMA Office Manager Vickie Johnston ( "Office Manager Johnston "), were present. During
the meeting, Warfield participated in a discussion concerning Parks' injury and the
acceptance of an offer made by Morrison to serve as the Licensed Operator in Parks'
absence. Warfield, Whetstone, and Adam were in favor of utilizing Morrison as the
Licensed Operator primarily due to his familiarity with the system, his possession of a valid
plant operator's license, and the fact that he was a longtime part -time or casual employee
of the IMA. Warfield, Whetstone, Adam, and Office Manager Johnston all believed that the
only other options to utilizing Morrison would be to hire an engineering firm or some other
Licensed Operator to oversee plant operations, which were viewed as more costly than
utilizing Morrison. Minutes of the October 20, 2014, meeting indicated that Morrison's plant
operator's license would be placed on file as the recognized Licensed Operator for the
IMA, for which he would receive $300.00 per month. There was no vote recorded as to the
change in Licensed Operator from Parks to Morrison, any change in Morrison's pay rate, or
any alteration as to the number of hours Morrison was permitted or expected to work each
week.
On October 20, 2014, Morrison replaced Parks as the Water Plant Operator. From
October 20, 2014, through December 21, 2014, Morrison worked a total of 22 hours
overseeing MA plant operations. Morrison received wages as a laborer based upon a pay
rate of $11.50 per hour and also received the Licensed Operator Stipend.
As a result of concerns among IMA Board Members that Parks would not return to
work, the IMA Board began interviewing applicants for the full -time position of assistant
plant operator around late November 2014. Morrison was employed full -time by the
Pennsylvania State University at the time and was not considered for the position. Ken
Caldwell ( "Caldwell ") was among the applicants interviewed by the IMA Board for the
position. Warfield and Morrison both participated in the interview process.
During the December 15, 2014, meeting of the IMA Board, Warfield voted on a
motion to hire Caldwell to fill the full -time position of assistant plant operator. Warfield also
participated in discussions and official actions of the IMA Board concerning the approval of
compensation for Morrison and other IMA employees. Warfield made a motion and voted
to approve emplo ee raises that included an increase in Morrison's pay rate from $11.50
per hour to $16.00 per hour effective January 1, 2015. The vote of the IMA Board did not
change or affect the Licensed Operator Stipend that Morrison had been receiving since
October 2014.
Caldwell was the designated assistant plant operator under the supervision of
Morrison. The IMA Board determined that Morrison would train Caldwell and serve as the
Licensed Operator until such time as Caldwell successfully completed his plant operator's
test. The IMA Board did not set or establish a minimum or maximum number of hours that
Morrison could work during 2015.
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Morrison set his own work hours in 2015, including hours spent in training and
assisting Caldwell. Morrison's work hours were recorded through timecards. Payroll
records for Morrison reflect that through August 15, 2015, he worked between 4.5 and
47.25 hours per pay period. Once Caldwell received his plant operator's license on
approximately August 15, 2015, Morrison ceased working part -time hours and reverted to
casual employee status. Morrison and Caldwell both received the Licensed Operator
Stipend in July 2015 and August 2015. Morrison stopped receiving the Licensed Operator
Stipend after Caldwell received his plant operator's license.
Office Manager Johnston prepared payroll checks based on employee time cards.
Payroll checks were signed by at least one IMA Board Member. The issuance of payroll
checks did not require preapproval byy the IMA Board. A de facto approval of payroll
occurred by the IMA Board's review of timecards and issuance of payroll checks. Warfield
reviewed timecards for all IMA employees, including Morrison. Warfield did not sign any
payroll checks issued to Morrison.
For the time period from January 2015 through August 15, 2015, Morrison claimed a
total of 375.25 regular hours of work and a total of 20 overtime hours of work. Based upon
Morrison's pay rate of $16.00 per hour effective January 1, 2015, Morrison was paid
$6,004.00 for his regular hours of work and $480.00 for his overtime hours of work.
Morrison was paid $1,823.68 more for his regular and overtime hours of work than he
would have been paid based upon his pay rate of $11.50 per hour priorto January 1, 2015.
The parties have stipulated that Morrison realized a financial gain totaling at least
$1,823.68 as a result of Warfield's motioning and voting to increase Morrison's pay rate
from $11.50 per hour to $16.00 per hour effective January 1, 2015.
The IMA is annually required to report its designated Licensed Operator(s) to DEP.
Around June or July of each year, DEP forwards to municipal authorities, including the
IMA, a Public Water System Available Operator Report ( "Available Operator Report') for
the year. In the case of the IMA, the Available Operator Report is sent to and completed
by Office Manager Johnston. The Available Operator Report requests the names of the
available operators along with their certificate numbers and classlsubclass licenses.
Since July 22, 2014, Office Manager Johnston has completed and signed each
annual Available Operator Report submitted to DEP by the IMA. Office Manager Johnston
signed and dated Available Operator Reports for 2014, 2015, and 2016, and she utilized
the IMA's email address and office telephone number as the point of contact on these
filings. On the 2014 Available Operator Report, Parks was listed as the only Licensed
Operator. On the 2015 Available Operator Report, Parks was listed as being removed
effective May 15, 2015, and-Morrison was listed as added effective January 3, 2015.
Changes to the Licensed Operators on file with DEP can be made throughout the
year by using an online Change of Available Operator Notification form. On July 22, 2015,
Office Manager Johnston submitted an online Change of Available Operator Notification to
DEP that added Caldwell to the available operator list for the IMA and made no change to
Morrison's status as an available operator for the IMA. Office Manager Johnston utilized
the IMA office telephone number and email address as the point of contact for the online
submission to DEP.
From July 22, 2015, until May 15, 2016, Caldwell and Morrison were both listed with
DEP as Licensed Operators for the IMA. In May 2016, Caldwell was the only IMA
employee receiving the Licensed Operator Stipend. Warfield believed that Morrison was
no longer listed with DEP as a Licensed Operator for the IMA and therefore unable to
resume collecting the Licensed Operator Stipend.
On May 12, 2016, Warfield sent an email from her personal email account to
Nicholas Barndt ( "Barndt "), Sanitarian, of DEP's North Central Regional Office. In the
Warfield, 16 -006
age
email, Warfield identified herself as a Member of the IMA Board, and she requested that
Barndt provide herwith the internet link to DEP's online change of available operator form.
Warfield provided Barndt with her personal email address as the only point of contact and
did not provide him with any contact information for the IMA.
On May 15, 2016, Warfield used the intemet link that she obtained from Barndt to
submit an online Change of Available Operator Notification to ❑EP. Warfield's online
submission to DEP removed Caldwell as the Licensed Operator on file with DEP and
replaced him with Morrison. Warfield's actions were intended to enable Morrison to receive
the Licensed Operator Stipend. There was no IMA Board authorization for Warfield to take
such actions, and she never informed the lMA Board or Office Manager Johnston of her
attempts to remove Caldwell in order to reinstate Morrison as the Licensed Operator on file
with DEP. Warfield had Morrison obtain the needed facility information and operator
numbers from IMA files to make the change without Office Manager Johnston's knowledge.
Warfield concealed her actions of contacting DEP by using her personal email address and
cell phone number as contact information for her online submission to DEP.
The IMA Board had a meeting on May 19, 2016. At that time, the IMA Board was
comprised of only four Members. Any IMA Board action required at least three votes for
a pproval. Warfield, Whetstone, and Adam were present for the IMA Board meeting.
Newly appointed IMA Board Member Dan Smith ("Smith " was not present. During the
meeting, Warfield participated in a discussion and official action that sought to appoint
Morrison as the Water Plant Operator and terminate Caldwell's employment, which would
have resulted in Morrison receiving the Licensed Operator Stipend.
An executive session that was held for employee matters enabled Warfield to solicit
the IMA Board to appoint/authorize Morrison as the Water Plant Operator and terminate
Caldwell's employment. Upon completion of the executive session, Warfield made a
motion to appoint Morrison as the Water Plant Operator. Warfield's motion was seconded
by Whetstone and opposed by Adam. Warfield followed her motion with a motion to
accept Caldwell's verbal resignation, which was purportedly tendered in November 2015.
Warfield's second motion was also seconded by Whetstone and opposed by Adam.
Warfield's two motions would have enabled Morrison to be designated the Water Plant
Operator and to once again receive the Licensed Operator Stipend. Neither of Warfield's
motions was approved due to a lack of three votes to approve the motion.
Immediately after Warfield's two motions were made, Caldwell confronted Warfield
with regard to the legality of her participating in IMA Board actions relating to the
employment status of her brother, and Caldwell accused Warfield of participating in an
illegal vote. As a result of Caldwell's accusation of an illegal vote, Whetstone made the
motion "to hire Donald Morrison as acting water operator and hang his license immediately,
Tom Adam opposes." Warfield did not participate in Whetstone's motion, which failed for a
lack of a second. In an effort to facilitate a vote on her motions, Warfield directed Office
Manager Johnston to contact IMA Board Member Smith to request him to report and
participate in the meeting to vote on appointing Morrison as the Water Plant Operator.
Upon arriving at the meeting, Smith was apprised of the matter by the IMA Board and
Caldwell. After hearing from the other IMA Board Members and Caldwell, Smith declined
to vote on the matter, and the matter was tabled.
There was no IMA Board meeting held in June 2016, due to a lack of a quorum.
During the IMA Board's meeting on July 18, 2016, Warfield participated in discussions
related to Morrison's employment status. Warfield asserted that Morrison had always been
the Water Plant Operator and had never removed his license from the IMA, and she stated
that Caldwell was hired as an assistant water operator. Caldwell commented that when he
was hired, he was informed he would be the Water Plant Operator and be compensated
the $300.00 per month once he received his license.
Warfield, 16 -006
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Caldwell continues to work for the IMA and receive the Licensed Operator Stipend.
Morrison had not resumed receiving the Licensed Operator Stipend as of the date of the
Consent Agreement (December 2, 2016).
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Karen Warfield, in her
capacity as a Member of the Irvona Municipal
Authority, Clearfield County, Pennsylvania,
motioned and voted for an increase in
compensation /wage for her brother, Donald
Morrison, who was an employee of the Authority;
and when she submitted a change of available
operator notification to DEP on May 15, 2016,
removing Ken Caldwell as the licensed plant
operator and replacing Caldwell with her brother,
Donald Morrison.
b. The Investigative Division chooses to nolle pros
and no longer pursue violations of Section
1105(b)(2) and (5) of the Public Official and
Employee Ethics Act, 65 Pa.C.S. § 1105(b)(2),
(5)-
4. Warfield agrees to make payment in the amount of $1,000.00
in settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Commission in five (5) monthly installments of $200.00 each to
be paid in full within five (5) months of the issuance of the final
adjudication in this matter.
5. Warfield agrees to file complete and accurate Statements of
Financial Interests with Irvona Municipal Authority through the
Pennsylvania State Ethics Commission, for the 2019, 2013
and 2014 calendar years within thirty (30) days of the issuance
of the final adjudication in this matter.
6. Warfield agrees to not accept any reimbursement,
compensation or other payment from Irvona Municipal
Authority representing a full or partial reimbursement of the
amount paid in settlement of this matter.
7. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does not
prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's order or
Warfield, 16 -006
Page
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1 -2.
In considering the Consent Agreement, we accept the recommendation of the
parties for a finding that a violation of Section 1103(a) of the Ethics Act occurred when
Warfield, in her capacity as a Member of the IMA Board: motioned and voted for an
increase in compensation/wage for her brother, Donald Morrison, who was an employee of
the IMA; and when she submitted a Change of Available Operator Notification to DEP on
May 15, 2016, removing Ken Caldwell as the licensed plant operator and replacing
Caldwell with her brother, Donald Morrison.
On October 20, 2014, Warfield's brother, Donald Morrison, became the Water Plant
Operator. From October 20, 2014, through December 21, 2014, Morrison received wages
at the pay rate of $11.50 per hour for overseeing IMA plant operations. Morrison, who held
a valid plant operator's license from DEP, also received the Licensed Operator Stipend
totaling $300.00 per month from the IMA.
Warfield used the authority of her office as a Member of the IMA Board on
December 15, 2014, when she made a motion and voted to approve IMA employee raises
that included an increase in Morrison's pay rate from $11.50 per hour to $16.00 per hour
effective January 1, 2015. For the time period from January 2015 through August 15,
2015, Morrison claimed a total of 375.25 regular hours of work and a total of 20 overtime
hours of work. As a result of the IMA Board's vote to increase Morrison's pay rate to
$16.00 per hour effective January 1, 2015, Morrison was paid $1,823.68 more for his
regular and overtime hours of work than he would have been paid based upon his pay rate
of $11.50 per hour prior to January 1, 2015. The parties have stipulated that Morrison
realized a financial ggain totaling at least $1,823.68 as a result of Warfield's motioning and
voting to increase Morrison's pay rate from $11.50 per hour to $16.00 per hour effective
January 1, 2015.
Morrison stopped receiving the Licensed Operator Stipend after Ken Caldwell
received his plant operator's license on approximately August 15, 2015. From July 22,
2015, until May 15, 2016, Caldwell and Morrison were both listed with DEP as Licensed
Operators for the IMA. In May 2016, Caldwell was the only IMA employee receiving the
Licensed Operator Stipend. Warfield believed that Morrison was no longer listed with DEP
as a Licensed Operator for the IMA and therefore unable to resume collecting the Licensed
Operator Stipend.
Warfield used the authority of her office as a Member of the IMA Board: (1) when,
on May 12, 2016, she sent an email to DEP, requesting the internet link to DE 's online
change of available operator form; and (2) when, on May 15, 2016, she used the internet
link that she obtained from DEP to submit an online Change of Available Operator
Notification to DEP which removed Caldwell as the Licensed Operator on file with DEP and
replaced him with Morrison. Warfield's use of the authority of her office was intended to
enable Morrison to receive the Licensed Operator Stipend. Warfield further used the
authority of her office: (1) when, on May 19, 2016, she made two motions in an attempt to
appoint Morrison as the Water Plant Operator and terminate Caldwell's employment, which
would have resulted in Morrison receiving the Licensed Operator Stipend; and (2) when, on
July 18, 2016, she participated in discussions related to Morrison's employment status.
Based upon the Stipulated Findings and Consent Agreement of the parties, we hold
that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when
Warfield, in her capacity as a Member of the IMA Board, motioned and voted for an
increase in compensation/wage for her brother, Donald Morrison, who was an employee of
the IMA; and when she submitted a Change of Available Operator Notification to DEP on
Warfield, 16 -006
Fa—g=
May 15, 2016, removing Ken Caldwell as the licensed plant operator and replacing
Caldwell with her brother, Donald Morrison.
As part of the Consent Agreement, Warfield has agreed to make payment in the
amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission in five (5) monthly installments of $200.00 each to be paid in full within five (5)
months of the issuance of the final adjudication in this matter. Warfield has further agreed
to not accept any reimbursement, compensation or other payment from the IMA
representing a full or partial reimbursement of the amount paid in settlement of this matter.
Warfield has also agreed to file complete and accurate Statements of Financial Interests
for calendar years 2011, 2013, and 2014 with the IMA, through this Commission, within
thirty (30) days of the issuance of the final adjudication in this matter. We agree that the
aforesaid recommendations are appropriate, including the recommendation that Warfield
file complete and accurate Statements of Financial Interests for calendar years 2011,
2013, and 2014, notwithstanding the nol pros as to the Section 1105(b) allegations.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Warfield is directed to make
payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and
forwarded to this Commission in five (5) monthly installments of $200.00 each to be paid in
full by no later than five (5) months after the mailing date of this adjudication and Order.
Per the Consent Agreement of the parties, Warfield is directed to not accept any
reimbursement, compensation or other payment from the IMA representing a full or partial
reimbursement of the amount paid in settlement of this matter.
To the extent she has not already done so, Warfield is directed to file complete and
accurate Statements of Financial Interests for the 2011, 2013, and 2014 calendar years
with the IMA, through this Commission, by no later than the thirtieth (30th) day after the
mailing date of this adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV. CONCLUSIONS OF LAW:
1. As a Member of the Board of the Irvona Municipal Authority, Clearfield County,
Pennsylvania, since approximately October 15, 2012, Respondent Karen L
Warfield ( "Warfield ") has been a public official subject to the provisions of the Public
Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq.
2. Warfield violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, in
her capacity as a Member of the Board of the Irvona Municipal Authority, she
motioned and voted for an increase in compensation /wage for her brother, Donald
Morrison, who was an employee of the Irvona Municipal Authority, and when she
submitted a Change of Available Operator Notification to the Pennsylvania
Department of Environmental Protection on May 15, 2016, removing Ken Caldwell
as the licensed plant operator and replacing Caldwell with her brother, Donald
Morrison.
In Re: Karen L. Warfield, : File Docket: 16 -006
Respondent Date Decided: 1124117
Date Mailed: 1/31/17
ORDER N4. 1 709
Karen L. Warfield ( "Warfield ") violated Section 1103(a) of the Public Official and
Employee Ethics Act, 65 Pa.C.S. § 1103(a), when, in her capacity as a Member of
the Board of the Irvona Municipal Authority, Clearfield County, Pennsylvania, she
motioned and voted for an increase in compensation /wage for her brother, Donald
Morrison, who was an employee of the Irvona Municipal Authority; and when she
submitted a Change of Available Operator Notification to the Pennsylvania
Department of Environmental Protection on May 15, 2016, removing Ken Caldwell
as the licensed plant operator and replacing Caldwell with her brother, Donald
Morrison.
Per the Consent Agreement of the parties, Warfield is directed to make payment in
the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission in five (5) monthly
installments of $200.00 each to be paid in full by no later than five (5) months after
the mailing date of this Order.
3. Per the Consent Agreement of the parties, Warfield is directed to not accept any
reimbursement, compensation or other payment from the Irvona Municipal Authority
representing a full or partial reimbursement of the amount paid in settlement of this
matter.
4. To the extent she has not already done so, Warfield is directed to file complete and
accurate Statements of Financial Interests for the 2011, 2013, and 2014 calendar
years with the Irvona Municipal Authority, through the Pennsylvania State Ethics
Commission, by no later than the thirtieth (30i ") day after the mailing date of this
Order.
Compliance with paragraphs 2, 3, and 4 of this Order will result in the closing of this
case with no further action by this Commission.
Noncompliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
is o as o a e dia, Nair